Stocks and Precious Metals Charts - This Is Why We Can't Have Nice Things - Audacious Oligarchy

"This week, I am introducing legislation to end a war that should have ended long ago, the war in Afghanistan.  The United States has been fighting The War on Terror™ since October of 2001 and it has cost 6 trillion dollars."

Senator Rand Paul


“The war is waged by the ruling group against its own subjects and its object is not the victory over either Eurasia or East Asia, but to keep the very structure [status quo] of society intact. The war is not meant to be won, it is meant to be continuous.”

George Orwell


“A racket is best described, I believe, as something that is not what it seems to the majority of the people.  Only a small 'inside' group knows what it is about.  It is conducted for the benefit of the very few, at the expense of the very many.  Out of war a few people make huge fortunes."

Major General Smedley Butler, War Is a Racket


"America's infrastructure is desperately in need of investment, according to the American Society of Civil Engineers.  The ASCE estimates the US needs to spend some $4.5 trillion by 2025 to fix the country's roads, bridges, dams, and other infrastructure."

Thompson and Matousek, America's Infrastructure Is Decaying

Between the continuous wars, bailing out the financial system, and subsidizing the soft corruption of the ruling class there seems to be little left over for keeping the country's infrastructure up to date and competitive.

Stocks failed to rally again today, but within an uptrending channel. I have marked it on the stock futures charts.

Gold and silver held their ground once again. The Dollar declined slightly.

Are we not exceptional? Are you not entertained?

Have a pleasant evening.

Stocks and Precious Metals Charts - Slip Sliding Away Into MMT - Non-Farm Payrolls on Friday

"We are warned against sharing in her sins and in her punishment;—against being found, when the end comes, mere children of this world and of its great cities; with tastes, opinions, habits, such as are found in its cities; with a heart dependent on human society, and a reason moulded by it;—against finding ourselves at the last day, before our Judge, with all the low feelings, principles, and aims which the world encourages; with our thoughts wandering, wandering after vanities; with thoughts which rise no higher than the consideration of our own comforts, or our gains; an admiration of the splendour and the fashions of the world, an affectation of refinement, an habitual self-esteem, and an utter ignorance of the number and the heinousness of the sins which lie against us."

John Henry Newman, The City of Antichrist


"It would be no sin if statesmen learned enough of history to realize that no system which implies control of society by privilege seekers has ever ended in any other way than collapse."

William Dodd, US Ambassador to Germany, 1933


"I was in Moscow doing business when the rouble was dying after the collapse of the Soviet Empire [and with the collapse of that political force, the failure of the state dictated exchange rates for their currency].  It made a lasting impression."

Jesse 2010

A value-dictated, purely fiat, currency exists through force and fraud. As the fraud grows thin and obvious, the greater and more pervasive the force must become. If imports are needed, wars of aggression will follow to extend and maintain the 'sphere of influence', a euphemism for control. When force finally falters, the currency collapses. A value-dictated, purely fiat currency is not an innovation— it is among the oldest forms of tyranny.

MMT is the Scientology of economics.

Stocks failed in their rally attempt.  Tomorrow is another day.

Gold and silver managed to find their footing.  They'll need to hang in there.

Non-Farm Payrolls on Friday.

Have a pleasant evening.

Stocks and Precious Metals Charts - Gold Chart Potential Cup and Handle

“Everything passes, only truth remains.”

Fyodor Dostoyevsky, The Brothers Karamazov

Crash Signatures

If you have been a long term reader here you know that I have something called a 'Crash Signature.'

One of the key components of this is a significant decline from a new all time high, that rallies substantially so that the fear subsides and most believe there is a return to 'normal' bubble conditions.

Unfortunately, IF this is a rally that fails, in that it fails to set a new high, but tops out and then falls sharply again, we have a higher potential of a crash in which confidence is shattered and a new lower low is set.

I have a correspondent in France who also does trend tracking such as this. While I have normally been using a composite model of several crashes from US market history (1929, 1974, 1987, 2001, 2008) he is concentrating lately on a comparison to the year of 1937.

It should be noted that the 'crash' of 1937 pales in comparison to the Crash of 1929. And it was largely caused by an egregious policy error by the Fed.

If you look at it carefully it does follow the 'crash signature.'

Here is the latest chart which he has sent to me. I think if we fail once again to take out 'The Wall' on my SP 500 chart, and drop to a lower low, there will be a higher than normal probability of a 'crash.'

Although I have to add that we are in the days of organized support, and mobilization of the entire country's money mechanisms, to support stock prices for the benefit of their primary constituents.

The next few months could be memorable.